Olympic Committee Says Esports Games Deal With Saudi Arabia Ends

The International Olympic Committee said it's no longer planning to jointly hold the Olympic ESports Games with Saudi Arabia.

The decision to end the partnership was made "mutually" and allows the IOC and the kingdom to pursue their own esports ambitions separately, according to a statement by the committee on its website.

Saudi Arabia and the IOC in 2024 clinched the 12-year deal that would see the kingdom host the inaugural Esports Olympics. Its termination marks a rare drawback in Saudi hopes of becoming a gaming hub, which has seen it invest vast sums of money as part of economic diversification plans. 

Riyadh hosted the world’s first Esports World Cup last year, with more than 1,500 gamers competing for a piece of a $60 million prize pot. The country is due to host the Asian Winter Games in 2029 and the FIFA World Cup in 2034.

Saudi Olympic and Paralympic Committee didn’t immediately respond to an email seeking comment.

Riyadh’s interest in esports highlights its push into areas which it sees as vital to diversifying the kingdom’s economy away from oil. Its sovereign wealth fund Public Investment Fund was part of a blockbuster $55 billion deal to take Electronic Arts Inc. private.

The IOC said that it remained committed to “developing a new approach to the Olympic Esports Games” without elaborating.

Saudi Arabia has sought an increasingly active role in the esports industry, with its state-backed Savvy Games Group acquiring esports tournament firm ESL in 2022 and the subsequent merger with gaming platform FaceIt as part of a $1.5 billion deal.

More recently, the country acquired RTS, a gaming talent company and the organizer of the EVO fighting game tournaments.